One area with greater potential to impact portfolios is the fate of the qualified dividend tax rate, scheduled to increase from 15% to ordinary income.
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Generally, the highest individual income tax rate on qualified dividends is 15% for 2012.
Class sizes are generally half those in state schools, the teachers are better qualified and the success rate a lot higher.
The maximum tax rate on qualified dividends is currently 15%.
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Unrealized gains are not taxed, long term realized gains and qualified dividends are taxed at the federal rate of 15%, short term realized gains, non-qualified dividends and interest income are taxed at ordinary income rates, which today can be as high as 35% at the federal level and higher still adding in state taxes.
This can create the very odd situation for some wealthy filers whose income composed primarily of capital gains and qualified dividends are taxed at a rate of only 15% on their Federal return and 9.55% (or more) on their state.
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In 2003, taxpayers faced a slew of changes, including new capital gains rates effective mid-year and a new lower rate on so-called qualified dividends.
Dividend income would be taxed as ordinary income, subject to the maximum rate of 39.6%, up from the current maximum rate of 15% for qualified dividends (plus the Obamacare surtax as referenced below).
Despite an estimated 40% unemployment rate , there are not enough qualified people to fill vacancies in hi-tech industries, engineering, finance, medicine and much else besides.
Qualified dividends are currently taxed at the same rate as capital gains, which means an individual who enjoys significant dividend income is, at most, handing over 15% of her checks to the federal government.
Many, but not all, preferred shares produce qualified dividend income that is taxed at a preferential rate of up to 20% versus the ordinary-income rate of as much as 39.6%.
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In the case of Brazil, firms appear to be confusing rising demand with rising inflation and, in the face of a record low unemployment rate, and a limited amount of qualified labor, hoard and overpay workers despite falling output.
Similarly, the maximum tax rate on long-term capital gains and qualified dividends jumps from 15% to 20% at these same thresholds.
The tax-rate on long-term capital gains and qualified dividends will increase from 15% to 20% for only those taxpayers earning in excess of these thresholds.
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Currently, qualified dividends are taxed at a preferential 15% tax rate.
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In a little-known provision of the Act, Congress extended the effective tax rate of zero percent on the sale of qualified small business stock (Section 1202 stock).
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For that top 1% of taxpayers, however, the maximum rate on ordinary income has increased from 35% to 39.6%, while the top rate on long-term capital gains and qualified dividends has increased from 15% to 20%.
Updated and with a 99.6 success rate could expose illegal aliens and open the gates for qualified citizens and authentic green card holders.
It would exclude all those immigrants that were coming into our country, at the rate of a million a year, until they had qualified themselves, and it would exclude a large number of ignorant and stupid Negroes until they had qualified themselves.
Keep in mind, btw, that while Obama would raise the top rate on capital gains from 15 percent to 20 percent, he would also tax qualified dividends at 20 percent.
One complaint already on the Web-site accounted the story of a customer who got duped into an exorbitantly high interest rate on his purchase when the customer service representative lied to him about whether he qualified for the "no interest, no payment" financing.
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